After a wave of negativity, trust in Perth reached second place in the country, with economic expectations improving
The outlook for Perth is very positive for the first time, after the prolonged period the city spent at the bottom of the market, according to the ANZ / Property Council survey for the September 2019 quarter.
"In general, the results of this survey paint an encouraging picture of real estate prospects in the state of Washington. Our period of declining confidence over the four quarters has ended and all key indicators are now moving in the right direction, "says Sandra Brewer, Executive Director of Property Council WA.
Consumer confidence in the market rose by 134 points to 134 index points in June. This figure is above the national average of 128 index points and just behind that of AS. Brewer notes that capital growth forecasts are also on the rise in Perth.
"In the residential sector, we have seen a much more moderate but important change in real estate capital growth forecasts over the next 12 months, which have also returned to a positive territory. . "
This confidence in the real estate market is accompanied by a revival of economic expectations across the country.
"We also saw a marked shift in expectations for national economic growth from negative territory to a positive return on the ground," says Brewer.
"Downward expectations regarding Washington State's economic growth in the June quarter have also rebounded, reaching to this day the highest level among all jurisdictions for the coming year. . "
The recovery in industry forecasts for the availability of debt financing over the next year is an important factor contributing to this improved outlook, which could, in turn, generate more revenue. employment opportunities for residents of the state of Washington.
The positivity surrounding Perth could attract more potential residents into the state, resulting in a fall in vacancy rates.
"The vacancy rate in Perth was about 6.0% in January 2017. It is currently at 3.0%. This is important for investors interested in Perth, "said Matthew Lewison, director of OpenCorp.
"While vacancy rates drop by less than 3.0%, the market is starting to favor homeowners again. Rising rents improve rental yields for investors, making it more attractive for buying and therefore putting upward pressure on prices. "
SUBURB OF WATCH
GERALDTON: A tale of two markets
As WA emerges from its slump that has lasted for years, Geraldton's coastal suburbs are enjoying better days as its housing market has seen strong growth over the 12 months to June 2019.
The median unit value is $ 224,528, a very affordable price, after an increase of 11.3% after a hint of positivity seen in 2017. However, the rental yields are really only 2.8% in average.
The opposite is true for the residential real estate market, where value growth has been in the red over the past five years. The median home price is actually lower than the units, below $ 200,000, after a 14.5% drop in value over the past year.
Affordability: Geraldton's lowest benefits are his low real estate prices, with houses selling for only $ 188,525
Growth: Considerable demand for units is reflected in sharp increases in unit prices and rents
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